CBI charge sheets Jagan Mohan Reddy

Hyderabad: The CBI today filed a charge sheet against Kadapa MP and YSR Congress chief Y S Jagan Mohan Reddy and 12 others in an alleged disproportionate assets case, accusing him of getting investments of several crores from firms into his own business as part of quid-pro-quo when his father was the chief minister.

With the CBI action, Jagan faces the prospect of arrest, official sources said.

The CBI charged Jagan and other accused with criminal conspiracy, cheating, falsification of documents, forgery and abuse of official position under relevant sections of IPC and other provisions of Prevention of Corruption Act.

The charge sheet was filed against Jagan, his financial advisor Vijay Sai Reddy and 11 others, including individuals and firms, in the special CBI court here.

It alleged that Jagan, Vijay Sai and former Andhra Pradesh Chief Minister late Y S Rajasekhara Reddy hatched a conspiracy to defraud the government with other accused including suspended IAS officer B P Acharya.

CBI said Jagan was the Director and Chairman of Jagati Publications Pvt Ltd (JPPL) from June 21, 2007 to February 1, 2011 and also had a majority stake in Janani Infrastructure Ltd, through his holding companies.

He later mobilised funds through different companies and individuals and benefitted in the form of quid-pro-quo allotment of lands in the industrial parks and other allied ventures developed by M/s Andhra Pradesh Industrial Infrastructure Corporation(APIIC) in the Special Economic Zones in Jadcherla circumventing the laid guidelines by using the influence of his father late Y S Rajasekhara Reddy, the then CM of Andhra Pradesh," the charge sheet said.

Jagan has been named as the prime accused, Vijay Sai Reddy (the only person to be arrested in the case so far) as accused No.2. Among the other accused are city-based pharma firms Aurobindo Group of Companies and Hetero Group of Companies besides Trident Life Sciences Ltd..

Jagan`s counsel, Ashok Reddy said the charges against him will not hold and liable to be rejected. In its 68-page chargesheet, the CBI has cited 263 documents and 66 witnesses.

Citing an instance, CBI said Nityananda reddy, Srinivas Reddy in conspiracy with YSR Reddy and Acharya got allotted 75 acres of land each at Jadcherla SEZ without following the rules and regulations for Rs 7 lakh per acre which is much below the rate fixed by the Price Fixation Committee and thereby wrongfuly gained Rs 17.20 crore.

As a quid-pro-quo, some firms invested more than Rs.15 crore in his companies, the agency said.

It alleged that Vijay Sai Reddy, founder Director of Jagati Publications in conspiracy with Jagan fraudulently got the group high valued by a leading rating agency by furnishing false and exaggerated information with an intention to justify fixation of high premium for its share value.

The CBI further alleged that B P Acharya and Y Vijayalaxmi Prasad, abused their official position in extending undue favours to Trident Life Sciences which obtained wrongful gain of Rs 4.3 crore in transfer of 30.33 acres of land and as quid-pro-quo invested Rs 7 crore in Jagati Publications.

According to FIR filed by CBI in August last year, JPPL which was incorporated on June 14, 2006 and accumulated a business loss of Rs 350 crore in four years could get a total investment of Rs 1,246 crore. As on March 31, 2010, JPPL had a paid up capital and share premium of Rs 844 crore invested by various shareholders including the accused companies and individuals.